Lindenhurst, New York, is a village of about 27,000 people located in Suffolk County, in the town of Babylon on the southern shore of Long Island. The town, originally named “Breslau,” was founded in 1873 and was renamed “Lindenhurst” in 1891.
While Lindenhurst is home to a bustling local economy and is part of the New York Metropolitan Area, individuals and businesses located in the village experience financial problems on a regular basis. These issues can arise for many reasons, including job loss, poorly performing investments, interest rate changes, consumer behavior (including overuse of credit), market forces, illnesses, injury-causing accidents, and unexpected expenses. Regardless of the cause, bankruptcy can often help individuals and businesses get back on their feet, eliminate debt, and obtain fresh financial starts.
To determine whether bankruptcy is right for you, call Ronald D. Weiss, P.C. today to schedule a meeting with a bankruptcy attorney. If you would prefer to send us an email, please fill out and submit our online contact form available here.
Chapter 7 bankruptcy, available to both individuals and businesses, is the most common type of bankruptcy filed in the United States. In this type of bankruptcy, the debtor’s nonexempt assets are liquidated and the proceeds used to pay off creditors. In many cases, any remaining debts after liquidation are discharged, which means that the debtor is under no obligation to pay them back. Common types of debts that are discharged in Chapter 7 bankruptcy include:
Many people who consider Chapter 7 bankruptcy are concerned that filing will result in the loss of important assets and leave them without any money. While it is certainly true that Chapter 7 bankruptcy can result in the loss of some assets, it is instructive to keep in mind that most Chapter 7 filings are “zero-asset bankruptcies,” which means that most filers do not have any non-exempt assets that the court can seize. When this occurs, bankruptcy filers often eliminate most or all of their debt while keeping all of their assets.
Chapter 13 bankruptcy is a type of reorganization bankruptcy that is only available to individual filers. One primary benefit of Chapter 13 is that filers can keep their property while making regular payments to the court to pay down their debts. In this kind of bankruptcy, the debtor proposes a repayment plan to the court that will last three to five years. The amount of your payment will depend on several factors, including:
Your Income – This can include wages, bonuses, Social Security benefits, maintenance payments, disability benefits, or other sources of income.
Your Expenses – When you file for Chapter 13, you will need to provide the court with a list of your expenses. Not all expenses are “allowable,” and you may only be able to use certain types of a certain amount of an expense in calculating your monthly payment.
Your Debts – Certain debts must be paid in full in Chapter 13, including child support, unpaid wages to others, some taxes, and past due child support or alimony. In addition, if you are behind on your house or car payments and want to keep those assets, your payments will need to be enough to pay the past-due amounts during the course of your plan.
Nonexempt Assets – If you have assets that would be nonexempt in a Chapter 7 case, you will need to pay your unsecured creditors at least as much as they would have been paid had you filed under that chapter.
At the conclusion of a Chapter 13 plan, any remaining unsecured debts are discharged, with a few exceptions.
Chapter 11 bankruptcy is similar in many respects to Chapter 13, but is available to both businesses and individuals. That said, Chapter 11 is typically used by businesses due to the onerous reporting requirements and high costs associated with filing. Similarly to Chapter 13, Chapter 11 allows the filer to keep its assets while the bankruptcy is pending, so businesses may continue to operate while receiving protection from creditors. In addition, in a Chapter 11 case, there is no trustee appointed—instead, the debtor becomes a “debtor in possession” and has all of the responsibilities and powers that a trustee would have in a Chapter 13 case. One downside of Chapter 11 is that the debtor in possession is required to obtain court approval for certain matters, including the sale of assets, breaking or entering a lease, secured financing arrangements, ceasing business operations, expanding business operations, and modifying existing agreements. While a business is in Chapter 11, however, it is protected from all collection activity, including lawsuits, repossessions, and foreclosures. In addition, it can often secure loans and financing on more favorable terms by giving new debt priority over existing debt.
If you have trouble keeping up with your financial obligations, bankruptcy may be an option to consider. Bankruptcy is not a one-size-fits-all solution, however, and there are many issues to consider before filing. In addition, if bankruptcy is right for you, determining under which chapter to file can be a complicated matter, as each has pros and cons.
The experienced bankruptcy attorneys of Ronald D. Weiss, P.C. are available to discuss your financial situation at no cost to residents of the Greater Long Island area, and will provide you a free estimate regarding our services. We regularly work with clients with needs related to bankruptcy, mortgage modification, and foreclosure. To schedule a consultation with one of our lawyers, call our office today at (631) 271-3737 or send us an email through our online contact form.
Contact Us
Contact Us